S&P 500 heads for best August in 36 years as traders cheer continued economic recovery
- US stocks fluctuated on Monday as traders weighed the economic recovery against climbing COVID-19 cases and lingering US-China tensions.
- The benchmark S&P 500 remained on pace for its best August since 1984.
- Still, coronavirus cases continue to climb in the US. And tensions between the US and China are elevated over the potential sale of TikTok.
- Both Apple and Tesla gained after undergoing stock splits.
- Read more on Business Insider.
US stocks traded mixed on Monday as traders weighed the economic recovery against climbing COVID-19 cases and lingering US-China tensions. The S&P 500 remained on pace for its best August since 1984.
Both the S&P 500 and the Nasdaq composite notched multiple record highs last week amid encouraging consumer-spending data and a shift in monetary policy from the Federal Reserve that is likely to keep interest rates low for some time.
"Jerome Powell's soothing tones are continuing to provide that calming reassurance for investors, even as we head into what could be a rollercoaster ride in the final months of the year," Craig Erlam, a senior market analyst at Oanda Europe, said in a Monday note. "Investors as ever are optimistic."
Here's where US indexes stood at 1:50 p.m. ET on Monday:
- S&P 500: 3,510.66, up 0.1%
- Dow Jones industrial average: 28,455.61, down 0.7% (200 points)
- Nasdaq composite: 11,811.22, up 1%
Two major stock splits took effect on Monday. Shares of Apple rose after a 4-for-1 stock split, leading the Nasdaq higher. Tesla also climbed after its 5-for-1 split.
Abroad, Nikkei 225 stocks rose in Japan, boosted after Warren Buffett's Berkshire Hathaway said on Sunday — Buffett's 90th birthday — that it bought stakes in five of the country's largest trading companies.
Despite major indexes sitting near record highs, investors are still looking for signs of progress toward further economic stimulus. Congress is set to return from its recess in September and could restart talks on details of the next stimulus package, over which Democrats and Republicans were deadlocked.
Meanwhile, coronavirus cases continue to climb in the US, hanging over markets. Tensions between the US and China also remain high. On Friday, Beijing claimed it could block a sale of TikTok to buyers such as Microsoft, Walmart, or Oracle.
West Texas Intermediate crude gained as much as 1.4%, to $43.57 per barrel. Brent crude, the international benchmark, rose 3.3%, to $46.53, at intraday highs.